'These remarks are clearly unfounded.
The company said it would be "halting any further rollout" of the ad.
Pepsi has bowed to pressure and is "pulling" its controversial advert featuring Kendall Jenner at a protest.
In the Pepsi ad, Kendall magically ended a stand-off between protesters and police by handing a male officer a can of Pepsi.
Pepsi initially released a statement on Tuesday saying that the ad spread an important message.
Pepsi issued a statement on Twitter about the pull-out, which at the same time also apologized to the public and to Kendall Jenner as well.
Soon after Kendall and her mom tweeted out the link to the commercial, viewers accused the ad of trivializing the Black Lives Matter movement and being tone deaf. This comes several days after its worldwide release and one day after social media backlash against the ad reached its peak.
We didn't want to be casual about any serious matter. She gives a police officer a can of Pepsi and, allegedly this was supposed to reconcile the differences between the protestors and the police.
"The original intent of the commercial was to mirror all the global protests trying to make this world a more equal place for everyone", the source says.
The ad fiasco had a negative effect on Wall Street, with Pepsi stocks closing down 0.12 percent Wednesday. "If only Daddy would have known about the power of #Pepsi", the tweet said.
Still, he also noted that the fallout wouldn't necessarily be that damaging, since a lot of the negative sentiment expressed on social media is "easily washed away overnight".
In 2013, it pulled an online ad for its Mountain Dew beverage amid complaints the spot embraced racial stereotypes and made light of violence toward women.